DETERMINATION OF IMPAIRMENT LOSSES RESERVE AND ITS IMPACT ON INTEREST EARNED AT PT BANK MANDIRI (PERSERO) TBK FROM 2014-2018 OF IMPAIRMENT LOSSES RESERVE AND ITS IMPACT ON INTEREST EARNED AT PT BANK MANDIRI (PERSERO)

: The purpose of this study is: This research method uses a quantitative approach based on time series data and cross sections. The population in this study is PT. Bank Mandiri (Persero) Tbk. In this study the sampling technique used probability sampling method. Determination of the sample using the simple random sampling method. Data analysis method in this study uses multiple regression analysis with the help of SPSS version 24.00. The results of the study show some conclusions as follows: 1) Delay in debt payment obligations (PKPU) is proven to have an influence on allowance for impairment losses (CKPN) with a positive relationship. 2) Credit quality (KK) is proven to have an influence on allowance for impairment losses (CKPN) in a negative direction. 3) Delayed debt payment obligations (PKPU) have been proven to influence interest earned with a negative relationship. 4) Credit quality (KK) is proven to have an influence on interest earned and 5) Allowance for impairment losses (CKPN) is proven to have an influence on interest earned with a negative relationship .


Introduction
The banking financial service sector is a very strategic business sector both in contributing to state revenues and in supporting business financing in the industrial sectors that are driven by the public. In the banking business, we know that there is interest income, moreover a bank which is a company that is known to provide credit facilities, interest is one of the income or profits from a bank's business activities which are charged to customers or bank borrowers who borrow. Interest income is income or profit obtained from banks or other financial companies where this income is obtained from the additional value obtained from loans or loans from customers, then the assumption is known as interest. In the course of its business sometimes debtors experience defaults due to several things such as business losses, business failures, criminal violations by debtors and even bad intentions from debtors who intentionally do not want to pay their obligations to the bank.
Deferment of Debt Payment Obligations is an alternative debt settlement to avoid bankruptcy. According to Munir Fuady, the Postponement of the Obligation of Debt Payment (PKPU) is a certain period of time given by the law through the decision of the commercial court, in which within that time period the creditor and debtor are given an agreement to deliberate on the methods of paying their debts by providing a plan peace (composition plan) for all or part of the debt, including if necessary restructure the debt. Thus the postponement of debt payment obligations (PKPU) is a kind of moratorium in this case a legal moratorium but the impact of this PKPU credit quality will be good in the sense that the credit collectability will increase thereby reducing the allowance for impairment losses (CKPN) but if Delay in debt payment obligations (PKPU) / Bankruptcy is submitted by other creditors while the collectability of the debtor credit in question in our place is good (smooth), then PKPU will result in a decrease in credit collectability because the Delay in debt payment obligations (PKPU) process takes time so that it will burden allowance for impairment losses (CKPN). Delay in debt payment obligations (PKPU) requests can be submitted by creditors or debtors to the Commercial Court. Delay in debt payment obligations (PKPU's) application can be submitted before there is a bankruptcy request submitted by the debtor or creditor or it can also be submitted after the original bankruptcy application is submitted no later than at the first hearing of the request for bankruptcy statement. However, if a request for bankruptcy and Delay in debt payment obligations (PKPU) is submitted at the same time, the Delay in debt payment obligations (PKPU) application will be examined first.
In the Delay in debt payment obligations (PKPU) process it is very important, it is even the main goal for the debtor, where the debtor as the person who knows the existence of the company best, how the company is in the future both potential and difficulty paying its debts from the possibilities can still rise again from debt bondage -debt to all creditors. Therefore, these peace measures are to develop a new strategy for the debtor to be very important. However, due to the difficulty of repayment of debts which may be due soon which temporarily cannot be resolved, the debtor is forced to make a peace concept, which this concept will later be offered to creditors, thus the debtor can still later, of course if This peace was agreed by the creditors to continue the debtor's company. In other words, the ultimate goal of Delay in debt payment obligations (PKPU) is to achieve peace between the debtor and all creditors of the proposed / offered by the debtor. The purpose of determining credit collectability is to determine credit quality so that banks can anticipate credit risk early because credit risk can affect the business continuity of the bank. In addition, the determination of credit collectability is used to determine the level of potential reserves due to non-performing loans. Interest Earned (interest income) is obtained from customers (debtors) who borrow funds in the form of credit. The amount of interest income depends on the amount of credit extended and the interest rate set. Each bank has a different interest rate policy that is adjusted to the cost of funds, strategy, and competition faced. Banks apply different interest rates for different types of loans or customer segments. For individual customers, credit cards and unsecured consumer loans are subject to higher interest rates by banks, while housing loans (KPR) or vehicle ownership loans that are guaranteed with purchased assets are charged lower interest rates than unsecured loans.

Interest Earned
Interest earned (IE) is the amount of interest earned during a certain period of time from the acquisition of investment results channeled in the form of credit by banks, interest earned from users of funds that are paid regularly from time to time as agreed. Interest earned is measured by earned interest data obtained from the financial statements of PT. Bank Mandiri (Persero) Tbk.

PPAP and Allowance for Impairment Losses (CKPN) Provisions
Introduction of PPAP and allowance for impairment losses (CKPN)

CKPN (Allowance for Impairment Losses)
Banks are required to form CKPN in accordance with applicable financial accounting standards (Banking Credit Business, IBI (2015). CKPN is strongly influenced by Non-Performing Loans (NPLs) or problem loans which are one of the key indicators to assess the performance of bank functions. In CKPN, formation or the allowance for funds is assessed from the results of the debtor's credit evaluation carried out by the bank.If according to a bank there is objective evidence that the credit of the debtor is impaired, the bank must establish a fund or reserve for the credit.

Deferment of Debt Payment Obligations (PKPU)
The definition of bankruptcy given by the Law is a general confiscation of all the assets of a Bankrupt Debtor whose management and settlement is carried out by a curator under the supervision of a Supervising Judge. Or in short, bankruptcy is a strike to make payments. Law Number 37 of 2004 concerning Bankruptcy and Obligation to Delay Debt Payment aims to protect the rights of both parties both creditors and debtors, which are reflected in the articles of the Law

Credit Quality
Determination of credit quality refers to the provisions of Bank Indonesia, namely PBI number 14/15 / PBI / 2012 concerning Assessment of Commercial Bank Asset Quality and SE BI number 7/3 / DPNP dated January 31, 2005 Regarding Commercial Bank Asset Quality Assessment. Credit quality in this study was measured using total debit data from collectives 1 to 5 obtained from the financial statements of PT. Bank Mandiri (Persero) Tbk.
NPL is a basic financial ratio that can provide information on the assessment of capital conditions, profitability, credit risk, market risk and liquidation. Usually the NPL ratio is a short-term target for banks. The higher the ratio of non-performing loans, the level of bank liquidity to third party funds (DPK) will be lower. This is because most of the funds channeled by banks in the form of loans are deposits of third party funds (DPK).

Hypothesis
Based on the framework that has been made, in order to answer the problem of this research, the proposed hypothesis is as follows: H1: Allegedly PKPU influences CKPN. H2: Allegedly the falling credit quality affects CKPN. H3: It is suspected that a large CKPN will reduce / decrease earned interest. H4: It is suspected that a large Delay in debt payment obligations (PKPU) will reduce / decrease earned interest. H5: It is suspected that large credit quality will increase / increase earned interest. H6: It is suspected that a large Delay in debt payment obligations (PKPU) low credit quality will increase CKPN. H7: It is suspected that a large Delay in debt payment obligations (PKPU) low credit quality will reduce / reduce interest earned.

Research Methods
This study uses a quantitative approach based on time series data and cross sections. The nature of this research is quantitative which in data processing uses statistical models. This research uses quantitative research methods that are classified into descriptive verification research through hypothesis testing. Research instruments used in research are tests and documentation. The population in this study is PT. Bank Mandiri (Persero) Tbk. In this study the sampling technique used probability sampling method. Determination of the sample using the simple random sampling method, which is a sampling technique that provides equal opportunities to every member in a population to be sampled (Siregar, 2013: 31). This study uses secondary data where data obtained from other parties or indirectly from the main source (company), in the form of data that is documentation. The data used in this study is the data series times, the data obtained from the financial statement data of PT. Bank Mandiri (Persero) Tbk.
The data analysis method used in this study is multiple regression The relationship between independent variables with the dependent variable can be described through the following linear regression equation: The following steps are taken to prove the hypothesis: Hypothesis Test with t-test, F-test, and coefficient of determination.

Results and Discussions
Before doing multiple regression testing and hypotheses. The researcher first tests classical assumptions. The classic assumption test is used to obtain an estimated value or an unbiased coefficient value from the regression model. Following are the presentation of the classic assumptions in the regression model.

Normality Test
Based on the results of normality testing, it is known that the value of Kolmogorov-Smirnov in Model 1 is 0.154 and the significance is 0.071 while in model 2, it has a Kolmogorov-Smirnov value of 0.117 and a significance of 0.139, while in model 3 it has a Kolmogorov-Smirnov value of 0.130 and a significance of 0.064. These three moods have a significance value that is greater than 0.05, therefore it can be concluded that all models have normal distributed residual data.

Multicollinearity Test
Based on the multicollinearity test results, it is known that the multicollinearity test results in model 1, model 2 and model 3, indicate that there is no multicollinearity problem because in all research models each variable gets a tolerance value greater than 0.1 and a VIF of less than 10.

Heteroscedasticity Test
Based on the results of heteroscedasticity test, all models in the study are free from heteroscedasticity problems, because the independent variable model 1 is PKPU and KK while the independent variable model 2 is PKPU and KK, then model 3 namely CKPN has a significant value> 0.05

Autocorrelation Test
Based on the results of the autocorrelation test, it is known that the results of the autocorrelation test with the Durbin-Watson model 1, the DW-calculated value is 1.540. This value will be compared with the alpha table value of 5%, the number of samples (n) is 60 and the amount. be concluded that dl <d <du with a value of 1.514 <1.620 <1652. So it is stated that there is no positive autocorrelation. Model 3 autocorrelation test results can be seen in the table below.
The results of autocorrelation testing of model 3 with Durbin-Watson, the DW-calculated value of 1.603. This value will be compared with the alpha table value of 5%, the number of samples (n) of 60 and the number of independent variables of 1 (k = 1), then the Durbin Watson table values obtained are dl = 1.549 and du = 1.616. From the Durbin-Watson value of 1.606 it can be concluded that dl <d <du with a value of 1.549 <1.603 <616. So it is stated that there is no positive autocorrelation.     0.05) and a significant value of 0.001 <0.05. These results indicate that the PKPU variable is partially proven to have an influence on interest earned with a negative relationship.

Multiple Regression Analysis
Based on Table 2 above, for model 2 it can be explained that the KK variable obtained a positive beta value of 0.603 with a t-statistic value of 7.861 and a t-table value of 2.002 (df = 57; alpha = 0.05) and a significant value of 0.000 <0.05. These results indicate that the KK variable is partially proven to have an influence on interest earned with a positive relationship direction.
Based on Table 3 above, for model 3 it can be explained that the CKPN variable obtained a negative beta value of -1.069 with a t-statistic value of -14.302 and a t-table value of 2.001 (df = 59; alpha = 0.05) and a value of significant 0,000 <0.05. These results indicate that the CKPN variable is partially proven to have an influence on interest earned with a negative relationship.  Table 4 above, the results of the simultaneous hypothesis testing of model 1 can be explained that the variable delays in debt payment obligations (PKPU) and credit quality (KK) obtain an F-statistic value of 783,012 and a significant value of 0,000 <0.05 so that Ho6 is rejected and Ha6 is accepted . These results indicate that the variable delay in debt payment obligations (PKPU) and credit quality (KK) is proven to simultaneously have an influence on the allowance for impairment losses (CKPN).  Table 5 above, the results of simultaneous hypothesis testing of model 2 can be explained that the variable delay in debt payment obligations (PKPU) and credit quality (KK) obtained an Fstatistic value of 50,248 and an F-table value of 3.159 (df1 = 2 df2 = 57; alpha = 0.05) and a significant value of 0.000 <0.05 so that Ho7 is rejected and Ha7 is accepted. These results indicate that the variable delay in debt payment obligations (PKPU) and credit quality (KK) are proven to simultaneously have an influence on interest earned. Furthermore, the results of the coefficient of determination test are carried out to determine the magnitude of the effect simultaneously between the independent variables on the dependent variable, this is indicated by the magnitude of the coefficient of determination (R2). The results of testing the coefficient of determination in this study can be seen in the following table.

Discussion of Research Results
Hypothesis testing presented in this study shows that all hypotheses tested using the multiple regression analysis method, indicate that all hypotheses were accepted. The following is a discussion of each of these hypotheses.

1) That the Postponement of the Obligation for Debt Payment affects the Allowance for
Impairment Losses, PKPU affects the CKPN because when the PKPU process, which lasts up to 270 days, will have an impact on the delay in obtaining a bank interest, so that the credit quality goes down, which in turn puts a burden on CKPN reserves. In accordance with Hypothesis 1, PKPU has negative influence on CKPN. 2) Credit Quality affects CKPN, this study provides the same results as the theory that credit quality (NPL) has a significant effect on CKPN because poor credit quality will burden the provision (CKPN). Hypothesis 2, Credit Quality influences CKPN. 3) In this study proves that CKPN has an influence on Interest Earned and this is in accordance with previous theories and research by IBI (2016), a high Allowance for Impairment Losses will reduce the income from Interest earned. Hypothesis 3: CKPN has a negative effect on Interest Earned. 4) Delayed debt payment obligations (PKPU) will indirectly affect Interest Earned. This happens because after the PKPU process runs, the debtor is not allowed to make any transactions, including interest payments to the Bank. Hypothesis 4: PKPU has a negative effect on Interset Earned. 5) Credit quality (KK) has a significant effect on Interest earned.

Conclusions and Recommendations
Based on the results of tests that have been carried out through statistical calculations, the conclusions obtained in this study are as follows: 1) Delayed debt repayment obligations (PKPU) are proven to have an influence on CKPN with a positive direction. 2) Credit quality (KK) is proven to have an influence on CKPN in a negative direction. 3) Delayed debt payment obligations (PKPU) have proven to influence interest earned with a negative relationship. 4) Credit quality (KK) is proven to have an influence on interest earned. 5) Allowance for impairment losses (CKPN) is proven to have an influence on interest earned with a negative relationship. 6) Delayed debt payment obligations (PKPU) and credit quality (KK) have been proven to simultaneously have an effect on the allowance for impairment losses (CKPN) because they obtained an F-statistic value of 783,012 greater than the F-table value of 4,007 (df = 58; alpha = 0.05) and a significant value of 0.000 <0.05. 7) Delayed debt repayment obligations (PKPU) and credit quality (KK) simultaneously proved to have an influence on interest earned because they obtained an F-statistic value of 50,248 greater than an F-table value of 4,007 (df = 58; alpha = 0.05 ) and a significant value of 0,000 <0.05.